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HomeMy WebLinkAboutMinutes 06-09-2022 Budget Work Session 1 APPROVED 916/22 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 9, 2022 7:00 p.m. The Orange County Board of Commissioners met for a Virtual Budget Work Session on Thursday, June 9, 2022 at 7:00 p.m. COUNTY COMMISSIONERS PRESENT: Chair Renee Price, Vice Chair Jamezetta Bedford, and Commissioners Amy Fowler, Sally Greene, Jean Hamilton, Earl McKee and Anna Richards COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) Chair Price called the Board of County Commissioners meeting to order at 7:00 p.m. A roll call of the County Commissioners was called; all members were present except for Commissioner Richards. Commissioner Fowler attended the meeting virtually, with the remaining Commissioners attending in-person at the Whitted Meeting Room. Chair Price welcomed everyone to the budget work session and reviewed the agenda. 1. Discussion of FY2022-23 Operating Budget • Funding Decisions on the Operating Budget Amendment List • Funding Decisions on the Other Funds Budget Amendment List • Funding Decisions for Chapel Hill-Carrboro City Schools and Orange County Schools o Current Expense (Per Pupil) The Board reviewed, discussed and made decisions regarding the FY2022-23 Manager's Recommended Orange County Annual Operating Budget and approved a Resolution of Intent to Adopt the FY2022-23 Orange County Annual Operating Budget. BACKGROUND: The County Manager presented the FY2022-23 Recommended Budget on May 3, 2022. Subsequently, the Board has conducted two public hearings to receive residents' comments regarding the proposed funding plan. In addition to the public hearings, the Board heard presentations and held discussions with representatives of the County fire districts, the local boards of education, representatives of the community college, and County Functional Leadership Teams as related to the proposed funding plan for FY2022-23. Tonight's Agenda: Tonight's work session offers the Board an opportunity to discuss the recommended budget, including discussion and review of the Budget Amendment list. As soon as these discussions are completed, the Board will deliberate and make decisions regarding the FY2022-23 Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2022- 23 Annual Operating Budget. The Board is scheduled to adopt the final FY2022-23 Annual Operating Budget for Orange County at its regular meeting on June 21, 2022. 2 Travis Myren, Deputy County Manager, made the following presentation: Slide #1 ORANGE COUNTY NORTH CAROLINA Intent to Adopt Budget Work Session June 9, 2a22 Slide #2 Decision Points 1. FY2022-23Operating Budget • Consider and Approve Amendments to the County Manager's Recommended Operating Budget 2. FY2022-32 Capital Investment Plan(CIP) • Consider and Approve Amendments to the County Manager's Recommended Capital Investment Plan 3. FY2022-23County Fee Schedule - Consider and Approve Amendments to the County Manager's Recommended Fee Schedule rt14 ORANGE COUNTY NOFM[CAROLINA Slide #3 Decision Points 4. FY2022-23 Tax Rates • Consider and Approve Amendments to the County Manager's Recommended Ad Valorem(Property)Tax Rate,Special District Tax Rate,and Fire District Tax Rates 5. Break 4. Resolution of Intent to Adopt • Consider and Approve the Resolution dt Intent to Adopt the FY2022.23 Operating Budget at the Board of County Commissioners Regular Meeting on June21,2022 • Operating 5u0gel for FY2022-23 • Year One(FY2022.25)of the Capital investownt Plan&Accept Ten Year Pie n • County.Speclal Disirlct,and Fire Oletrlct Tax Rates Fee schedule ORANGE COUNTY NOFM[CAROLINA 3 Travis Myren first presented all of the following slides, then the Board reviewed and discussed each individually a second time. Slide #4 Operating Budget Amendments h 22-2 OP-00A G4R+n45�4ne�B9df4�d dv r a9"R hpoldi r w oPer - 8500.UU4 hdgelo 15H,DDG.HaWd&U83 0PE9 Ir rwVdm4Wby'the aemeemant 2-230FLN4 onwh%&nerBeArd DPEB Thai Bhhh Vanger W or Gemal Furidb i5-ID000 OPE9 Trust fund r:+.r�Ob UW rr-reae b arnent eg*me hddgel ORANGE COUNTY NORT]r CAR-011N,7 Commissioner Bedford said that Commissioner Richards was on the way and requested that the Board move on without her. Commissioner Bedford referred to a chart she sent to the Board calculating the per pupil expense increase. She said that Chapel Hill Carrboro City Schools has a large fund balance, but Orange County Schools does not. She said the County Manager's proposed increase of $441 per student would result in an additional $3.5 million for Orange County Schools. She said that the continuation budget requires $1.1 million, so that means the increase for new and expanded items is $2.4 million. She said that Orange County Schools and Chapel Hill Carrboro City Schools are two of the highest funded districts in the state, but they remain below the national average. She said teachers have the biggest impact on students, and having high vacancies of teachers in the schools is an issue. She said she brought forth budget amendments to make a difference for Orange County Schools. She said both districts have asked for increased compensation for staff. She reviewed the compensation request from the districts and said that those did not include possible increases required due to increased funding from the General Assembly. She said 1 cent on the property tax that would go solely to schools would result in $911,000 going to Orange County Schools. She referred to a chart she sent to the Board regarding Other Postemployment Benefits (OPEB) liability. She said the trust fund was first funded in 2016. She said that OPEB funds have been moved to school funding before. She said this is sensitive to the assumptions about interest rates. She said it is difficult to predict. She said that the biggest drawback to putting funds in an OPEB Trust Fund is that it can't be taken back later. She said they could expect those expenditures will increase but when you look at the ratios across the country, they have liability to revenue of three and Orange County's is only .53. She said that is a big difference. She said that this is well within their ability 4 to fund. She thinks they should move $500,000 to the schools before the county funds those benefits in advance. Chair Price asked about the impact of not funding the OPEB Trust Fund and asked if it would put them in any type of jeopardy. Bonnie Hammersley said it is a best practice to fund. She said the consequences of not funding are unknown. Gary Donaldson, Chief Finance Officer, said it is a best practice. He said that it is meant to provide a multitiered approach to fund the liability. Commissioner McKee said the OPEB liability is at $161 million, and 8-10 years ago they were at $60 million or something close to that. Gary Donaldson said the federal monetary policy results in changes to the fund and there is an inverse reaction on the fed rate. He said that there were 150 basis points of reduction over the last five years. Commissioner McKee said their basic liability is $161 million today regardless of what happened in the past or what happens in the future. He said it was his recommendation to fund it in 2016 and 2017 and they funded above what was required. He said he is very concerned to start defunding the liability. He said it would hit back at some point, and it will hit at a higher number because it steps up every year. He said it has gone up $100 million in liability in ten years. He said he is worried about what happens years from now. He said he does not want that to become a number that catches the rating agencies' attention. He said that he would like to add to it. He said this is a matter of fiduciary responsibility, obligation to the taxpayers. Commissioner Richards arrived at 7:20 p.m. Chair Price summarized the conversation prior to Commissioner Richards' arrival. Commissioner Greene said she struggled with the amendment. She said that it is a best practice for a good reason. She said that for sustainability, they should not set the expectation that the funds will be part of the school budget in future years. Commissioner Fowler asked if the staff recommendation is to put it in the OPEB trust fund or to put it in committed funds. Bonnie Hammersley said the recommendation is to put it in the OPEB Trust Fund. Commissioner Fowler asked if they gave the money to the schools and then had a fund balance available next year, could put that in the OPEB Trust Account at that time. Bonnie Hammersley said it would be up to the Board at that time. Commissioner Hamilton said the schools are in crisis. She said the OPEB is an accounting practice which at this point, given the amount of funding that Is available for the liability, is not needed this year, but it is something that needs to be planned for in the future. She said that Orange County does not have a lot of growth because we do not have a lot of big industries. She said that also creates stability. She said the cities that had trouble lost major industries. She said the county is heavy in the property tax base, and with the demand for people coming into the community, they are going to have growth in the future. She said there is flexibility to use those funds. She said that as they grow in the future, or when they have additional funds, the Board could make the decision to put it in the trust fund. She said the schools are in crisis. She said if the Board wants the community to look like a rust belt then they can undermine economic development by undermining education. She said they do not have enough teachers or staff to support them. She said that the county cannot provide for a basic education. She said that the Board cannot stand by and not assist in a way that has the least impact on taxpayers. Commissioner Richards asked if the Board might create another crisis by robbing the OPEB fund. She said that was her concern and the potential to impact credit ratings and fiscal 5 management of how they are evaluated is worth considering because it has implications far broader than just $500,000. She said that even if she agreed that schools are in crisis, she said they has to be very careful about where they take it from. She said that she did not agree that this was a fiscally sound decision. Chair Price said they have a responsibility to the people who have worked for the county. She said she wants to avoid setting the county up for a bad reputation on how they manage their finances. She said that she would prefer to find the funds elsewhere. She said she does not feel that taking from one to give to another. Commissioner Fowler said she was a very conservative person, and originally had concerns about the proposed amendment. She agreed that the schools are in crisis and lacking a teacher is a crisis. She suggested taking only $250,000 for the schools and leaving $250,000 for the OPEB Trust Fund. Commissioner Bedford said she would accept that amendment. Chair Price asked the County Manager if ARPA funds could be used for a teacher retention program. Gary Donaldson said under revenue replacement there is some cushion, and it could be done. Bonnie Hammersley said she thought it was an eligible use. She said when the county gives ARPA funds to other entities, the county signs an agreement with the entity that they will do all of the reporting. She said the county does not budget funds for the schools by line item, and that the county cannot tell the school districts how to use the funds. Commissioner Bedford asked if ARPA funds could be used to supplant SRO or nurse funds for school resource officers and other positions and then use the funds for the schools. Bonnie Hammersley said she did not think it would be an eligible use because those positions did not come up as a need during the COVID-19 pandemic. She said the county cannot supplant ongoing expenses with ARPA. Chair Price asked if it were a teacher retention program would it work. Bonnie Hammersley said that salaries would be a current expense and she did not think that would be an eligible use. She said that she would be very cautious about that. She said that she does not want to get into a mess in 2024 over ARPA funding and management. Commissioner Hamilton said that Gary Donaldson's report made it clear that there is no threat to their bond rating. Gary Donaldson said it has not been a concern at the rating agencies. He said the other part of that is that jurisdictions are beginning to do a multi-tiered approach and prefunding an irrevocable trust. He said that is the reason for a slow and incremental approach. He said the actuary may show a higher rate of return when they do their report. Commissioner Hamilton said right now it will not affect our bond rating. Commissioner Richards said she did not read it that way. Commissioner Hamilton said it is something in the future that might affect the bond rating. She said that it is not something we need to be concerned about now. Commissioner Richards said that this could create a bigger gap to fill in the future and that will have to be addressed. She said that anything they do for the schools this year will be part of their budget in future years and will continue. She said by adding additional funds they would be creating a situation where there will be less to put into the fund in the future. She said that schools would start out in a higher place than where they are now. Commissioner McKee said it is easy to create funding for worthy projects. He said that they create precedents and expectations. He said they create programs that take on a life of its own. He said that they have set the precedent of not funding OPEB and allowing the liability to grow from $60 million to $160 million in 10 years. He said that he does not think that the additional funding of $500,000 will affect the schools. He said they have the #1 and #3 school 6 systems in the state. He said that they cannot let the legislature dump it back on counties because it creates a bleed down problem and he is not willing to let Orange County pick up the state's lack of funding. He said that the OPEB fund is a lot of money, and it will need to be paid sometime. He said that he could not support the amendment. Commissioner Fowler said if they did half-and-half then they could continue $250,000 to each entity. She said that Orange County Schools does not have a large cushion the way that CHCCS does, and any small amount could be helpful. Commissioner Greene asked if Commissioner Fowler could clarify her suggestion. Commissioner Fowler said she is recommending that the fund $250,000 to the schools and $250,000 to the OPEB Trust Fund. Commissioner Greene asked Commissioner Fowler for more clarification on what she said about the future expectation of those funds. Commissioner Fowler said if they continued in that way in the future, it would not increase their tax obligations or have to find new funds. Commissioner Bedford said that she accepts that amendment. Commissioner Hamilton said she could support that. Chair Price said they are still taking money out of OPEB with this scenario. Commissioner Bedford said they already expect $500,000 in revenue so they would just split it and would be sustainable because those revenues are expected to continue. Chair Price said there is no guarantee that those revenues would be there. Commissioner Richards asked how the $500,000 amount was determined. Bonnie Hammersley said it was her recommendation to fund the OPEB Trust Fund at $500,000 annually. She said she met with an actuary and this was their recommendation. She said that she will continue to recommend that because it gives the county strength by demonstrating that they are a strong financially managed county. Commissioner Richards asked what would be achieved by including $500,000 each year for the OPEB Trust Fund. Bonnie Hammersley said the county would demonstrate that a percentage of the liability can be covered, which is a criterion reviewed by rating agencies. Chair Price asked if there was support for budget amendment 22-23OP-004, which would increase school funding by $500,000 and reduce the recommended allocation for the OPEB Trust Fund by $500,000. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-004. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. Commissioner Bedford asked if there was support for increasing school funding by $250,000 instead and decreasing the recommended allocation for the OPEB Trust Fund by $250,000. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of the proposal. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. Slide #5 Operating Budget Amendments 2-230P mssronarGmee.n tMary f�rr ra unda�rah�ramhorrs�l prn- 3d6,53ti haePnre prn)ti mein Lbrarfior atdel oostof 46 56D -MP43W rieeionarGreenear sduoads5peroraliurdatD: ►"by "63E0 hei Price ESDia A31 resuraion of Sunday Poarsiar rMn UA -230P*W rrissbnerr3reeneanOARPA MbuAaddrWiAFRAfurdng for tat W. Fi&Pnce Re4a�ueReDn na�tDrajedkami�e Unakr-TWPrajed h supporloostfor ass househo1d"a0br63ra 2-23OP-CM Ernrn!3!3K3nsrGreenB and MTA fBduo3Unakr-3WP*dbyW,MD13 "63E0 hae Price PhElt inTeaealo fia Rawanue bC�a1l�iil �Ci ORANGE COUNTY �,)O TI I CAROLINA Commissioner Greene discussed the amendment to restore Sunday hours at the library. She said she thought it was particularly important during the summer months. Chair Price said she was supportive of the amendment and knows that many people want to go to the library on Sunday afternoons. She asked how the increase would be expended. Travis Myren said the Sunday hours would be covered by temporary staff. Chair Price asked if temporary staff receive benefits. Travis Myren said no. Chair Price asked why temporary staff would be used. Travis Myren said that covering Sunday hours would require flexible scheduling but would not constitute a 40 hour/week position. Commissioner McKee said he supported this amendment due to the education component and because Sunday afternoons are some of the only times families can spend together. Commissioner Bedford asked the County Manager if any budget cuts from the year before were restored in the FY23 recommended budget. Bonnie Hammersley said no, the previous year's cuts were sustainable cuts. Commissioner Bedford said she recalled that some of the cuts to hours were based on scheduling needs. Bonnie Hammersley said Sunday hours were reduced as part of the previous year's sustainable budget cuts. She said that the reduced hours were based on peak usage hours. Commissioner Bedford asked if it would be possible to shift hours during the week so there would not be a budget increase. Travis Myren asked for clarification on the question. Commissioner Bedford suggested a shifting of hours from the weekdays to cover Sundays. 8 Erin Sapienza, Interim Library Director, said staff looks at visits to the library on a daily and hourly basis. She said Sundays had fewer visits than during the week. She said shifting hours might not accomplish the intended goal. She said there are differences in the visits between weekdays and weekends. She said that the library tries to align hours during weekdays to accommodate reference questions, business-related questions, and work and resume advice. She said weekends tend to have more leisurely, family-type visits. Chair Price said the library has fantastic programs for children and teens and that there are always something going on. She asked the County Manager if she was ok with the funding source. Bonnie Hammersley said she was comfortable with the proposal. All of the Commissioners said they were in favor of budget amendment 22-23OP-003. Slide #6 Operating Budget Amendments OP FF777-nerH277on WPX Abbate add4wEI RPAfundripfortl-e Unp Time Horneanne1rA9ktwr9 Prcgramla ewa1325D.QD0 in awaleble flx�drg fo+FY 2CQ2-23 from dx Una1Dm3 dPra' a 2.230P4N rnrniy4merliamkn AIRPA Reduce UnakxftoProjeclb�316,36410 (S16364 cUe#irveaselo Lang The Homeowner vlance Frpgram 2.230P-M mraisaioneniamkp Edux m easene*o schoddWcl'opera q 52509 budpalby325D 3�dimMbyADM)wd eawieta-M wdteirrng for al rccnty arh"0 25DQDQ. 2-2dOP-0D6 mraie merfiwkn N1 i325D.QDQ setawel and 7aicA49 for al ccuq b=nBm by 525d DUtDof&al nmmgBia qdiadq currun exp3nse ORANGE COUNTY h OFM r cAlk{}1 INA All of the Commissioners were in favor of budget amendment 22-23OP-002, which would increase ARPA funding for the Long Time Homeowner Assistance Program by$16,364. In reference to budget amendment 22-23OP-006, Commissioner Hamilton said the schools are in crisis. She said there are insufficient teachers. She said they are not fulfilling the obligation to provide basic education. She said her approach was to look across the budget to find ways to provide funds without raising taxes. She said they need to be able to recruit and retain teachers. She said this does not eliminate travel and training but cuts it in half. She said that travel and hotel fees will be less due to more virtual training. She said that all staff should get the salaries they deserve. Commissioner McKee asked the County Manager what the effect was on staff for the lack of training. Bonnie Hammersley said that the required certification training always went forward. She said that this is more discretionary training. She said that staff has been looking forward to this and wanting it to come back. She said that it provides advantages and the ability to 9 network. She said that she does not know if they can measure the exact impact of it, but it is a retention and recruitment tool. She said that she shared the amendments with department directors, and it caused some concern. She said they have not had it for a few years. Commissioner Fowler said that when weighing the recruitment and retention with county staff versus school staff, she said they are giving 3% raises, disability insurance, and parental leave. She said that these are things the schools are trying to provide and that they currently have no parental leave and no disability leave. She said this is not completely cutting it but cutting it in half. Commissioner Bedford asked if ARPA funds could be used for travel and training. Bonnie Hammersley said it could not be used for discretionary travel and training. Chair Price said she is concerned. She said they are responsible for 1,000 people who work for the county. She said she has received a lot of training over the years and that it provides education, networking, and it improves morale. She said that going to conferences and trainings, people get ideas that could be implemented at Orange County. She said that staff across departments need to keep up with the times. She said she feels it is their job to focus on retaining the county staff and treating them properly. Commissioner Bedford said she supported the amendment because she thinks that the travel requiring hotel stays will decrease. She said that they can look next year for increased demand. She said that children not having teachers is more important. Commissioner Greene said this is a good versus a good. She said she places trust and value in the County Manager and department heads. She said that they will not be able to hire many teachers with $250,000 split between two school districts. She said that the amount would be distributed across departments here and will be used. She said that she does not support the amendment. She said she has to ask if this gets them the right bang for the buck. She said that she trusts management and department heads. She said they could review it next year and decrease it if it is not all spent. She thinks it is an important benefit to attract and retain employees. Commissioner Richards said it has been a hard time for all employers. She said she cannot say teachers versus county employees, and she does not want to give that perception to the employees. She said that once you split $250k between two districts there is not the same impact when comparing it to all county employee training. She said that she is inclined to go with manager's recommendation. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-006 which would increase school funding by $250,000 and reduce travel and training for all county departments by $250,000. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. 10 Slide #7 Operating Budget Amendments 22-2d)NM anrnssonerHarrikn Ldrica6an Ireeeselhefnoschodd1* operam 51DQ,00 budge]by 110D 000 jNded bfADRI}and deaEase OrtsideAgenryiundng by 11000D] 22-KOP-0a7 CannssionerWrrpW W.We DeareaaeOuWdeAgenryi.irdnpby 131Qf�QCq hgeroeS 3100.QWtoo sm ncream0smools ourrell expense. 22-KOP-008 ConrrissionerFNarrilbarl duc*n lr,)r aseihefnoschod&Wn operabnq S350,00 budge]by 050 0D0{druded bfADM�end useARPA finch of 0M,D0Diun Ihs Unaloca]edPra d 22-23OP4308 CinnggiarerHaribxr duration ReduoeUnakra]edPrajedby13500D0 (53500CU d)d] d ricream0rie+SchodsWrerx Expensepr*a ORANGE COUNTY NOKTI I CARt}l N..) In reference to budget amendment 22-23OP-007, Commissioner Hamilton said she looked at a number of ways to move resources to the public schools because she thinks it is a crisis. She said that they are talking about 19,000 children that they are responsible for. She said they are the most vulnerable in the committee and that education is fundamental. She said that all of the amendments together were trying to make a critical mass of money for the schools. She said that they need to consider that one of the issues that the schools are facing is that teacher pay does not reflect the education and experience. She said it fuels the gender pay gap in the country. She said that women get 83 cents for every dollar men make. She said that public education is one field where women and are undervalued. She said that women are overrepresented in the teaching field and that accounts for 51% in the difference in the men versus women wages. She said that they have not paid them for what they are worth. She said that it is paramount that they find more funds. She said that she does not want to be in the position to trade off needs but the impact of COVID is serious and she is not going to stand by when she sees this. Commissioner McKee said his concern is that outside agencies are operating on a short budget already. He said that they are working on the edge. He said that they do a lot of work that the county does not provide. He said it is a tradeoff. He said that he does not want to increase the viability of educational system at the expense of agencies that do the work that the county cannot. Commissioner Greene said that although the dollar amount is small, it is the one she is most strongly opposed to. She said that they have already committed to outside agency funds, and they are already operating on a shoestring budget. She said that she cannot justify this amendment. Chair Price said that she agrees. She said they need the funds, and it is almost like a bridge fund to them. She said that she believes in the private-public partnership. She said the 11 services they provide are either filling the gap or augmenting what the county does. She said they help to provide jobs and services that the county is unable to provide. Commissioner Fowler said she values what outside agencies offer. She said that funding them at a much larger budget this year due to the increase in the sales tax revenues. She said that a 6% decrease would still mean funding at 1.27%. She said that would still be above the 1.2% usual goal. Commissioner Richards said the emphasis on the outside agency funding this year reviewed the work and questioned if the agency supported, augmented, and were aligned with what the departments needed. She said that if they take away from that, are they ultimately taking away funds that will needs to spent to fill the gap. Chair Price said in some cases they are filling gaps, so the gaps would just remain. Commissioner Hamilton said the process is not new, just that the Board sets the dollar amount and the Manager makes the individual allocation. Commissioner Fowler said it would still be more money than they got last year. Commissioner Richards said there are a couple of new ones that are getting funding this year. She asked if those would drop off completely. Chair Price said no they would get 6%-7% less overall. Commissioner Richards asked if they would just reduce all of the allocations by that percentage. Bonnie Hammersley said that is how she would recommend it because if they did a dollar amount then some funding would be wiped out. She said that department heads will meet with the outside agencies to discuss what they can do with the reduced amount. Commissioner Hamilton said that the way that would make it the fairest would be fine. Commissioner McKee said he had a difficult conversation with a representative of an outside agency that felt the funding was insufficient. He said that they wanted him to insert additional money through an amendment and he told the person no, because there was a process. He said that he has gone through meetings where there was horse trading in funding some projects and reducing somewhere else. He said that cutting $100,000 will have an effect. Commissioner Greene said this is not the way to do it. She said that it is not fair at this point to go back to the agencies and tell them that they are getting a reduced amount. She said that would not breed trust. She said the outside agencies need every penny. Chair Price said it is a good thing to have outside agencies to do the work that government cannot do. She said that they took a hit during the pandemic, and it is important to help them get back on their feet. She said that some cases they encourage the agencies to provide living wages to their employees. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-007 which would increase school funding by $100,000 and reduce Outside Agency funding by $100,000. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. Commissioner Hamilton said she was inclined to change the next budget amendment, 22-23OP-008, to increase funding. Travis Myren said that is the technical way they are showing the available ARPA balance and to place it in the current expense budget. Commissioner Hamilton said the schools need more money. Chair Price asked if the $350,000 comes from the $4.1 million in ARPA funds. Travis Myren said the $4.1 million is assuming that all of the ARPA amendments are adopted. He said that currently there is $4.8 million in unexpended ARPA funds. Commissioner Hamilton said she would instead like to take $1.2 million from unallocated ARPA funds to give to the schools. Commissioner Greene asked how much ARPA money would be left. 12 Gary Donaldson said it would be $3.6 million. Commissioner Greene asked for clarification on this. Bonnie Hammersley said there would be the $700,000 from the fire districts and that amendment passed so it would be $4.8 million minus that and that would leave $4.1 million. Chair Price asked if they have to specify the use if $1.2 million is given to the schools. Bonnie Hammersley said there would have to be an agreement with the schools. Commissioner Bedford asked if it could be done indirectly. Bonnie Hammersley said she was not sure where they could find $1.2 million. Commissioner Bedford said she was not sure if there was enough wiggle room. Bonnie Hammersley said the ARPA funds are being used for emergency housing and things like that and she does not know where the $1.2 million could come from. Commissioner McKee said he has concerns with funding out of another pot. He said that is the same dance that the legislature did with the lottery funding. He does not want the Board to follow that example of shifting money. He that that his more immediate concern is that ARPA is a onetime event. He said that you can only sell the cow one time. He said that ARPA is the same way, you can only spend it one time. He said to do this you create a higher starting point next year and the obligation. He said they are already increasing the money to the schools, and it will never be enough. He said that the need is always more. He said that the budget accommodates an increase. He said that he does not want to use ARPA money for an operating expense. Commissioner Greene said she was uncomfortable making ARPA decisions at this juncture of the budget. She said it seems like there will be about $3.26 million left in ARPA funds and they started out with $28 million. She said they need to think very carefully about how they use it and that they do not have to do it tonight. Chair Price said she agreed with Commissioner Greene. She asked the Manager if she was planning to come back in the fall regarding ARPA. Bonnie Hammersley said the towns will not be looking at ARPA funds until September and that will help the county determine what they need to do. She said they are looking at the Partnership to End Homelessness with the towns, and it will be an ARPA issue. Commissioner Hamilton said she is not concerned the sustainability of this proposal. She said that public schools were adversely affected by COVID, using those funds for that makes sense. She said that schools need this to plan and hire and fill the classrooms in both districts. She said that education is an economic development issue. She said that public education is the second highest employer in the county. She said that children and teachers are under amazing strains and not just with COVID. She said they need to do something. She said they have a pot of money to buy time to shore up public education while they address the ongoing issue of supporting teachers. She said she supports giving them the compensation and benefits they deserve. Commissioner Richards asked for clarification on the total amount she is requesting from ARPA funds. Commissioner Hamilton said $1.2 million out of ARPA funds. Commissioner Greene said $3.26 would be left in ARPA funds. Commissioner McKee asked how the FY22 increase of$1.5 million was funded. Bonnie Hammersley said it was from surplus and was done as a budget amendment. Commissioner McKee said this could be addressed with an amendment next fiscal year. He said that if they see the need, they can discuss that at the time. He said that he does not see it as a pressing need to include it tonight. Chair Price asked the County Manager how they are looking for funding for eviction prevention. Bonnie Hammersley said that comes through the emergency housing assistance. 13 Chair Price clarified that it comes through ARPA. Bonnie Hammersley said yes. Chair Price said there is a possibility that they would be using the $4.1 million in the future for that. Bonnie Hammersley said it is one of the needs that will not go away quickly. She said they will come back in September with a plan because they will not have $4.1 million every year to fund it. She said they will not have as much money to do as much later and will have to turn people away. Commissioner Bedford said it cannot wait because they begin to recruit teachers early. She said to wait mid-semester the talent is not there. She said it is important to know what is available now to offer as a supplement. Commissioner McKee said the schools are already receiving extra funds that they could use to address that. He said that they could do a budget amendment for the schools later and if they allocate the $1.2 million now, it will not be there should a more urgent need arise. He said that they are providing additional funds to the schools, and they can choose how they want to spend it. He said that if there are immediate needs in the schools, they will let the county know. He said that if they allocate it tonight, it goes into operating, and the county loses control. Commissioner Richards asked for clarification if the $4.7 million for housing is already in the recommended budget. Bonnie Hammersley said yes, and they are talking about when that is gone. Commissioner Richards clarified that the towns would come back in the fall for what would be needed in the future. Bonnie Hammersley said it will be a discussion on future needs to discuss how they will go forward with emergency housing assistance. Commissioner Richards asked if the balance takes that into consideration. Bonnie Hammersley said that the Board has not allocated that yet but that it is one area where staff knows that there will be a need, and it is completely eligible. Commissioner Hamilton reiterated the importance of timing to get teachers in place. She said the recommended budgets lay out the needs and the salary schedules to recruit and retain. She said that the need is now. She said she does not understand the need to wait. Commissioner Fowler said that the schools need to know now how to budget so they can recruit teachers. Commissioner McKee said there will always be a need, and there will always be a greater need than the county can support. He said that the schools can accommodate and decide how they will allocate their funding stream. He said that he understands the need is now. He said he cannot get around the fact that the schools are two of the three highest funded school systems in the state. He said that if they cannot attract teachers then how can schools at a third of our funding level attract teachers. He said that he thinks they attract good teachers. He said that he questions the funding decisions the schools are making. He said that when they allocated $800,000 to the Chapel Hill Carrboro-City Schools, they did not hire a single teacher, TA, or tutor. He said they created ten $80,000 positions in central staff. Commissioner Bedford said that is not accurate. She said they are certified supplemental teachers for counseling. Commissioner McKee asked if they are in the classroom teaching students. Commissioner Bedford said no. Commissioner McKee said he has an issue when the highest funded school system in the state, Chapel Hill Carrboro-City Schools, has a disparity in outcomes between low wealth and between Black, Asian, Hispanic, and White students. He said that the disparity issue at the level they are funding, he cannot accept. He said that he cannot accept the fact that the school 14 used that funding and did not put a single teacher into the classroom and there has to be a focus on students that aren't going to make it. Commissioner Fowler said that Chapel Hill-Carrboro City Schools chose that plan because it was intended for mental health. She said that Orange County provided it to teachers and that Chapel Hill-Carrboro did not know they had the option. Commissioner Richards said it was either supposed to be for mental health or achievement gap. Commissioner Bedford said that Commissioner Fowler was correct that it was for either option. Commissioner McKee said that is also his point. He said that it was an option, and they made a choice. He said it makes a difference to him. Commissioner Greene said that Orange County did not fund teachers, but they used it for staff. She said she understands that it is a special crisis year for the schools, it also a crises year for the community. She said that she is satisfied that they are striking the best balance. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-008 which would increase school funding by $1.2 million and reduce unallocated ARPA funds by $1.2 million. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. Slide #8 Operating Budget Amendments k 2-23776 nr"wmers&-(W tftc4iop easeiheVoschoddiDOW d F'amlbi� udgels[ecktcadat+i by S 1.000,000 QD �grip rir le 46 mserie finds 2-23OP-OM D3mmromEnE3dbrd ujiL.46 Dea-BaseArkde46reserueiaafset tib1.D00060 d Harnrlton 510W,WD itrraesela sdiaafs rurert experee. -23OP-01 mr mnersPrrceard ARPA Mlocate ad*lor;a ARPAidrdingrce radio 6769,1 rEplarernuilstr Orange Grave Fire Orstrrct, NewHTsFisDWr;i, mdSmtr �rwga Resarre SWed ints Fire Gistrirt PadioRepl cemamprgwtomdie iJnAxam Pro1ecl -23OPiRl Frrr6 metsPrieeard �WA Reduce kJn8 cffNProjedb�$789.1X [SmD.1xQ bULO irrraeseto Fire Distib lRedia Repla&wem prnled f ORANGE COUNTY 3DFUI t CAROLINA Regarding budget amendment 22-23OP-005, Commissioner Bedford said $447,000 could be moved from the Article 46 reserve to the schools without impacting the following years needed funds for economic development. She said that would mean to be sustainable, the following year there would need to be a quarter cent tax increase to fund it in future years. She said she felt that $450,000 is a better number than $1 million. 15 Commissioner McKee said he is against the amendment. He said that he has been on the Board since 2010. He said at that time, he had seen the county bypassed by economic development projects year after year. He said he learned that there was no effort to attract business with jobs and taxes and that the state economic development office had written the county off. He said that previous commissioners had made comments that Orange County was going to be a bedroom community to the Triangle. He said in doing so, it caused the tax rate to be where it is now. He said starting in 2011-12 an issue was put to the voters for a 1/2 cent tax with half going to the schools and half going to economic development. He said there was no indication that the funds would be moved around. He said that the half-cent sales tax was a promise made to voters that half would go to schools and half would go to economic development. He said with its passage, the county started to get attention. He said that businesses like Morinaga came calling. He said if it had not been for the money, there would be no lift station and if no lift station, no Morinaga. He said that there are reserve funds, but they have obligations reaching out into the future. He said that if they start moving money out of economic development then the county will revert back to where they were. He said that it will not be ok, and they we will not have the money if another major project comes calling. He said that he cannot support any reallocation of the Article 46 sales tax funds. Commissioner Hamilton said the Board will discuss Article 46 more in depth at the retreat. She said there was an agreement that for 10 years it would be split 50/50, and those 10 years are up. Commissioner McKee said that was not how it was sold. Commissioner Hamilton said that education equals economic development. She said that she is not against economic development but education feeds into the bigger economic development big picture. She said that her concern is looking forward, she sees that the community will be a place where older people and rich people live and people with young families will not be able to afford it. She said that if we want teachers to live in our community then they need the compensation to allow it. She said by not shoring up education they risk being less affordable and less diverse. Chair Price said she would like to maintain the 50/50 split until they have a chance to talk about it further. She said that without economic development, parents will not have jobs. She said that Article 46 was meant to provide jobs for people who live in Orange County. She said that they have to bring economic development to the county in order to relieve the property tax burden on homeowners. She said she would like to maintain the 50/50 split. She said it is barely enough, and the county's economic development department is quite small. Commissioner Hamilton said this proposal does not change the 50/50 split, but it takes funds from the reserve. Chair Price said it still takes funds from economic development. Commissioner McKee said the reserve can be spent on Durham Tech initiatives, arts, grants for businesses, and small businesses. He said he may have focused on too many big companies, but there are small fish out there that benefit. He said it may be a one-time draw but it is still a drawdown. He said they never know when that reserve will be needed. Commissioner Greene said she is concerned about sustainability. Commissioner Bedford, Commissioner Hamilton, and Commissioner Fowler were in favor of amendment 22-23OP-005 which would increase school funding by $450,000 and reduce the Article 46 reserve fund by $450,000. Chair Price, Commissioner Greene, Commissioner McKee, and Commissioner Richards were opposed. All of the Commissioners were in favor of budget amendment 22-23OP-001, which would allocate $789,100 in additional ARPA funding for radio replacements for the Orange Grove and New Hope Fire Districts and the South Orange Rescue Squad. 16 Slide #9 Recommended School Funding • Operating Budget Sohool Funding — page 132 Operating SchoolTotal Recommended Diistrl-ct Funding CAfrent Expenss, $93,57$,782 Average Defy Wmbamhip Demas vlct $2J.$D7.$n Nol Aftcat-edlry Dmsldct -Health&S3fety Coancts $3,735,435 Ona School Nurse per Facility On&Safely Olilcar lot NWdh and F4gh School* Transferto School Capital $1.21MCOD Pay as You Go Capital Funding TOTAL $120,324,620 Cureat Expense $93,578.781 Tate ProjecttaCSiudeft 71a,4155 = Total Per Pupil Allocatlon$4,909 ORANGE COUNTY ? ORT3 r CARLDUNA Travis Myren said based on the discussion, there would be no change to the County Manager's recommended budget for the schools. All commissioners were in favor of a per pupil allocation of$4,808. 2. Discussion of FY2022-32 Capital Investment Plan • Funding Decisions on the Capital Investment Plan Amendment List • Accept FY2022-32 Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY2022-23 The Board discussed the FY2022-32 Capital Investment Plan, accepted the Ten Year Capital Investment Plan, and approved the Intent to Adopt Capital Funding for FY2022-23. BACKGROUND: For over 20 years, the County has produced a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County as well as Schools. The current CIP consists of a 10-year plan that is evaluated annually to include year- to-year changes in priorities, needs, and available resources. Approval of the CIP commits the County to the first year funding only of the capital projects; all other years are used as a planning tool and serves as a financial plan. Capital Investment Plan — Overview The FY 2022-32 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and Durham Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. 17 The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth and 4% sales tax growth over the next ten years. Many of the projects in the CIP will rely on debt financing to fund the projects. The items below include revisions made to the following Capital Projects since the presentation of the Manager's Recommended Capital Investment Plan on April 5, 2022: • At the May 12, 2022 Budget Work Session, staff included a revised Schools Capital Projects Summary reflecting adjustments made in regard to changes to the FY 2022-23 budgeted average daily membership (ADM) percentages, based on changes made from the time of the original CIP presentation and the FY 2022-23 Manager's Recommended Operating Budget presentation. The impact of these numbers changed the CHCCS percentage from 60.36% to 58.78%, and changed the OCS percentage from 39.64% to 41.22%. Slide #1 Capital Investment Plan Amendments h 2-23OP-oo2 onYnrssronei Greene emwpdr�ontropem+ranafded CYmsie hanpe(ira-b of$15.00Oarmore Amwda maple =Wernerr�l gram cycles A be peGW tupetke 5d'rvd and ca mmunty appYr�}and rel be adud on N*orneaxnpatiwa evalaalon and �d proeeEa! 2,2}Ct H4 awmr&"m emnove SmM Orange Oanpuo Erpenaian h A end 14��5r19SAN) 2,00FOOt h*mr PriGu 510p.0 t crum mki-prkbrts Purry Hip $1 H. t 11 2-2 P.009 oM6!]tomefRrchard3Trafl%crt3bDnand onverini�eWvp65reGUmrren*9dhr 5.DDI M6 aaernemviFY2 22-23to ek#rc rnodeda�tl add4x�nlpHcemerbb r+rbnd mcrx�s al a 1 co5t cf S109= h.VAon,aid36.000 b prgenhudaelGo-instal charng oapebrnes o nummay •Cirnalba hhbflebon folds That are npl sparm or awarded each year atlhe end orsa im¢am cycia wii be sdvMlsed and made avarlahle to any elgibleappleard(rough a suinpenwmi gran cpcie Ird're Wal talBmce available euceeds 615.OW. AxarcIsrnade Ihrouq-1 The s,pprernental pant cycle wall rdlow true aarne ccmpaplroa vskiellon and award process esrcepl Ital in hs cycle(here wUl be a*one pawl rsehod and oonrnuniry applicarrts together} Annual amourds irraeasseach year.based on an asbmatad2%nalural growth In ass%Gad pmpertgvakre;FY 2025,26 includes an adrtbonal esomated 57%rrrQeasedue 101he next amicipaledd Revaluation. ORANGE COUNTY NORTI r 1-ARGIANA Commissioner Greene reviewed amendment 22-23CIP-002. All of the Commissioners were in favor of budget amendment 22-23CIP-002, which revised the policy on unspent/unawarded Climate Change Grants of $15,000 or more. There was no budgetary impact. Commissioner Greene reviewed amendment 22-23CIP-004. She said part of the need for the Southern Orange Campus Expansion was for a dental clinic, but now the county has a mobile dental clinic and needs have changed. She proposed removing the project from the CIP. Chair Price said the amendment does not affect the budget and Commissioner Greene agreed. 18 No Commissioners expressed opposition to budget amendment 22-23CIP-004. Chair Price reviewed budget amendment 22-23CIP-001. She said this would turn some county owned park into a mini park for a neighborhood. She said that David Stancil said it would cost around $100,000 to $120,000. Commissioner McKee said this is a lower wealth community without many amenities. He said the area is a bit of a depressed area. Commissioner Greene was curious if it had gone through a staff review. Chair Price said she spoke with the DEAPR director, David Stancil, and held a zoom meeting with the community members. Commissioner Greene said what she needed to hear is that David Stancil was on board with the plan. Chair Price said that he was and even made some suggestions on options and design for the park. Commissioner Bedford asked if the parks advisory board would have ranked that first. Chair Price said it was a request from the community and would not have gone before the parks advisory board. Commissioner Hamilton asked what the usual process is when a park of any sort is recommended. Chair Price said this is an unusual request. She said the county does not generally do mini-parks but this is recognizing that smaller communities built in the 1950s and 1960s don't have a lot of amenities. Commissioner Greene asked how the county came to own the land. David Stancil said the property came to the county's ownership in the 1980s through a tax forfeiture or a similar arrangement. He said it is currently a vacant lot. Commissioner Richards said there is a significant amount of money in the Parks' budget. She said this seems like a small amount of money they could possibly find. David Stancil said that $100,000 will not build a lot but it will create an opportunity for recreation. He said that it might include trails, a small play area, some picnic tables and benches. He said it is a 2-acre lot in the middle of a subdivision that does not have amenities. He said that it meets a need for a community that seems to have one. Commissioner McKee said that there is a similar small pocket park in Hillsborough. Commissioner Bedford said other communities do not know that this could be an option. She said that it does not seem like there has been a prioritization of funding. David Stancil said that the Parks and Recreation Council said that they will be spending the next year to review the 2014 Master Parks and Recreation Plan using the equity lens. He said there are some places like this subdivision that do not have recreation opportunities within them. He said that will likely be part of the conversation. Bonnie Hammersley said this is a county-owned parcel, and the county is only developing its own property. All of the Commissioners were in favor of budget amendment 22-23CIP-001, which would allocate $100,000 to create a small park in the Perry Hills community. Commissioner Richards reviewed amendment 22-23CIP-003. All of the Commissioners were in favor of budget amendment 22-23CIP-003, which would add $115,000 to the CIP in order to convert nine vehicles recommended for replacement to electric models, and to convert two vehicles recommended for replacement to hybrid models, as well as adding $6,000 for installation of charging stations. Commissioner Fowler said she had to leave the meeting early but indicated approval of all of the remaining amendments. Commissioner Fowler left the meeting at 9:19 p.m. 19 Slide #2 Capital Investment Plan Amendments 22-23CIP-OM STAFF etBancy eduoa5389000h pars 1-3torArtftrlr•tres f5s 60C nnoes =MsedinedmncmthrtughBudget �roeridmerd 11 on May 24.2D22 2-23C1NA STAFF _mergence Reduce343,000forFrehlarshal'dehtde {5f50LY1� races 3LrEhasedincurertyear 2-23GPJV 3TAFF xnegefve re#e3200.OWamtetErne:genaySr ,+ces S2W,WD Serv"s ene<xalBReplecernemPrajedbpraadea dng soure hr rep acemertrnatertals and Equ rrentlDrEmenjancf.Seryices ORANGE COUNTY NORTI I CAROLINA All of the Commissioners were in favor of staff recommended budget amendments, 22- 23CIP-005, 22-23CIP-006, and 22-23CIP-007. 3. Discussion and Decision on the FY2022-23 County Fee Schedule Travis Myren, Deputy County Manager, presented the following information: Slide #1 Counter Foe Schedule • o Amendments Proposed ORANGE COUNTY NORTI I CAROLINA 20 Commissioner Bedford said there was a fee listed for COVID vaccinations but clarified that it will only go into effect once the status of its approval changes and the money runs out. She said that later in the month, 6 months and up children will be eligible. 4. Discussion and Decision on the FY2022-23 Tax Rates i. Ad Valorem Tax ii. Chapel Hill-Carrboro City Schools Special District Tax iii. Fire District Tax Rates Travis Myren, Deputy County Manager, presented the following information: Slide #1 Tax Rates Ad Valorem Tax 83,12 C HCCS Special District Tax 18. 0 * Fire Districts Fire PY2021-3 FY2022-J Tax Rate Poet.Tax Rare Glfferense _a iarq+q 7 61 7 5S 0�0 ioprl Hill 13.67 '3.87 "Q7 ffY9EC 119 11. 0 Rand 0.29 nD 9.98 AO l'Ir Rive- 639 6.39 QUO Now Hope 10.12 rpnge QWM 0-27 iargeRwLL 949 9.49 0M `aodtq Oran a'A 9.00 0-00 SoWwm Triandr 10.00 lim` iIBCr069 12.39 t .34 0_W ORANGE COUNTY MDR711 CARDLEWL 5. Break (to allow Finance and Administrative Services to formulate Draft Resolution of Intent to Adopt FY2022-23 Operating Budget) Chair Price asked for a motion to recess the meeting for 20 minutes to allow staff to prepare the Resolution of Intent. Commissioner Greene made a motion, seconded by Commissioner McKee, to recess the meeting for 20 minutes. Roll call ensued. VOTE: UNANIMOUS Commissioner Bedford made a motion, seconded by Commissioner Hamilton, to reconvene the meeting at 9:22 p.m. 21 Roll call ensued. VOTE: UNANIMOUS 6. Resolution of Intent to Adopt FY2022-23 Annual Operating Budget • Approval of Resolution of Intent to Adopt FY2022-23 Annual Operating Budget at the Board of County Commissioners Regular Meeting on June 21, 2022 Rebecca Crawford, Deputy Financial Services Director, reviewed the following resolution, RES-2022-034: Resolution of Intent to Adopt the FY2022-23 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 9, 2022 in approving the FY2022-23 Orange County Annual Operating Budget and the FY2022-23 (Year 1) Capital Investment Plan Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2022-23 Manager's Recommended Budget and the FY2022-23 Manager's Recommended Capital Investment Plan Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the FY2022-23 County Manager's Recommended Budget on May 3, 2022; and to the FY2022-23 Manager's Recommended Capital Investment Plan Budget as presented on April 5, 2022; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2022-23 Orange County Budget Ordinance on Tuesday, June 21, 2022, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 83.12 cents per $100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 18.30 cents per $100 of assessed valuation. c) The Fire District and Fire Service District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): • Cedar Grove 7.63 • Greater Chapel Hill Fire Service District 13.87 • Damascus 11.80 • Efland 8.28 • Eno 9.98 • Little River 6.39 • New Hope 11.56 22 • Orange Grove 7.27 • Orange Rural 9.49 • South Orange Fire Service District 9.09 • Southern Triangle Fire Service District 11.80 • White Cross 12.34 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. 3% wage increase for permanent employees in active status on June 30, 2022. Continuation of Merit Pay Program on employees' base salaries, payable in January 2023, at tiers of $500 for proficient performance; $750 for superior performance or $1,000 for exceptional performance. b. Deletion of Section 28-60 of the Orange County Code of Ordinances regarding in range salary increases tied to annual performance reviews as the county has replaced that program with the Merit Pay Program. c. Revision of Section 28-61 (a) (3) of the Orange County Code of Ordinances to change effective date of meritorious service awards to the first pay period of January. d. Continuation of classification and grade reviews and addressing salary compression as appropriate using compression adjustment formula. e. Adopt Step Salary Schedules for defined classifications at the Sheriff's Office (attachment 1) and Emergency Services (attachment 2) and continue to develop and implement similar step programs for other county classifications. f. A change in the salary schedule recognizing $15.85 per hour as the living wage for permanent employees and recognizing the 3% wage increase, effective July 1, 2022. g. Continue the $27.50 per pay period County contribution to non-law enforcement employees' supplemental retirement accounts and the County matching employees' contributions up to $63.00 per pay period (for a maximum annual County contribution of $1,638) for all general (non-sworn law enforcement officer) employees; continue the mandated Law Enforcement Officer contribution of 5.0% of salary, and continue the County's required contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. For FY 2022-23, the Law Enforcement Officers (LEOs) rate increases from 12.10 to 13.04 percent of reported compensation, and all other employees' rate increases from 11.35 to 12.14 percent of reported compensation. h. Implement a county paid short term disability plan for eligible employees. i. Offer additional voluntary benefit offerings to employees including Pet Discount Program, Legal Insurance, Identify Theft Insurance and Long-Term Disability j. Continue to participate in the North Carolina Health Insurance Pool (NCHIP), and continue medical and prescription third party administrators with Blue Cross Blue Shield of North Carolina (BCBSNC) and Prime Therapeutics, a division of BCBSNC, respectively. No increase to health and dental appropriations. Increase funding of 5% to the Health Insurance Premium Equivalents for both active and pre-65 retirees with the amount of the increase to be fully paid by the County. k. Continue the additional eight hours of annual leave to be awarded at an employee's anniversary date, prorated for part time employees. I. Continue the six-week paid parental leave policy. 23 Adjustments to the Manager's Recommended FY2022-23 GF Operating Budget On June 9, 2022, the Board of County Commissioners approved the following changes to the Manager's Recommended annual operating budget for the 2022-23 fiscal year. The information below summarizes changes made by the Board. Revenues Increase Decrease Manager's Recommended Revenue Budget $258,109,579 Total Revenue Changes $0 $0 Revised Revenue Budget 258,109,579 Expenditures Increase Decrease Manager's Recommended Expenditure Budget $258,109,579 Restore Sunday afternoon hours(12pm-6pm)to main Library for a total cost of $46,550. $46,550 Reduce DSS general fund allocation by$46,550 to offset restoration of Sunday hours for main Library. ($46,550) Total Expenditure Changes $46,550 1 ($46,550) Revised Expenditure Budget $258,109,579 Adjustments to the Manager's Recommended FY2022-23 CIP Budget On June 9, 2022, the Board of County Commissioners approved the following changes to the Manager's Recommended CIP Funding for Year 1 (2022-23 fiscal year). The information below summarizes changes made by the Board. Expenditures Increase Decrease Manager's Recommended County Projects CIP Budget for Year 1 (FY 22-23) $10,872,009 County Projects: Add$100,000 to create mini-park for the Perry Hills community (year 1) $100,000 Revise policy on unspentlunawarded Climate Change Grants of$15,000 or more.Awards made in supplemental grant cycles will be pooled together(school and community $0 applicants)and will be awarded on the same competitive evaluation and award process.* Convert nine vehicles recommended for replacement in FY2022-23 to electric models and two additional replacements to hybrid models at a total cost of$109,000. In addition, add $115,000 $6,000 to the project budget to install charging capabilities where necessary. Remove Southern Orange Campus Expansion project in years 9 and 10($5,485,000) $0 Reduce$388,000 in years 1-3 for Ambulances, purchased in advance through Budget ($388,000) Amendment 11 on May 24, 2022 Reduce$45,000 for Fire Marshal Vehicle purchased in current year ($45,000) Create$200,000 annual Emergency Services Renewal&Replacement Project to provide a $200,000 funding source for replacement materials and equipment for Emergency Services Total Expenditure Changes $415,000 ($433,000) Revised County CIP Budget for Year 1 (FY 22-23 $10,854,009 24 4) Changes in County Staff Positions (Increase in FTE Approved). Department Position Name Fund Start Date FTE Animal Services Shelter Veterinarian-Medical Director General Fund 7/1/2022 1.000 Department of Social Services Social Services Assistant General Fund 7/1/2022 1.000 Department of Social Services Human Services Specialist I General Fund 5/18/2022 1.000 Public Health Dentist General Fund 7/1/2022 1.000 Public Health Dental Assistant General Fund 7/1/2022 1.000 Public Health PH Nurse II: Preparedness Coordinator General Fund 7/1/2022 0.400 Department of the Environment,Agriculti Park Coordinator General Fund 7/1/2022 1.000 Department of the Environment,Agricultt Park Coordinator General Fund 1/1/2023 2.000 Sheriff Detention Officer General Fund 9/1/2022 7.000 Sheriff Detention Officer General Fund 11/1/2022 8.000 Emergency Services EMT-BASIC General Fund 7/1/2022 4.000 Emergency Services EMT-BASIC General Fund 9/1/2022 4.000 Emergency Services Paramedic Trainee General Fund 7/1/2022 4.000 Criminal Justice Resource Department Treatment Court Manager General Fund 7/1/2022 0.500 Totals 35.900 5) General Fund Appropriations for Local School Districts The following FY2022-23 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $93,578,782 and equates to a per pupil allocation of$4,808 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $55,007,882 2) The Current Expense appropriation to the Orange County Schools is $38,570,900. b) School Related Debt Service for local school districts totals $21,807,353. c) Additional net County funding for local school districts totals $3,738,485. (1) School Resource Officers and School Health Nurses Contracts - total appropriation of $3,738,485 to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. 6) Capital Investment Plan Funding for FY2022-23 (Year 1) The following FY2022-23 (Year 1) Capital Investment Plan Appropriations are approved: a) Overall Total Capital Investment Plan Funding of$40,610,532 b) County Capital Projects Funding of $10,854,009 c) School Capital Projects Funding of $28,514,160 25 d) Solid Waste Project Funding of$722,363; and Sportsplex Project Funding of $520,000 7) County Fee Schedule To adopt the County Fee Schedule to include changes in the FY2022-23 Manager's Recommended Annual Operating Budget and approved by the Board of County Commissioners on June 9, 2022. Commissioner Bedford made a motion, seconded by Commissioner McKee, to approve the Resolution of Intent to adopt the FY2022-23 Annual Operating Budget at the Board of Commissioners Regular Meeting on June 21, 2022. Commissioner Hamilton asked about a position in communications. She asked if that is a new position. Travis Myren said that is a transfer from the County Manager's office to Community Relations. Roll call ensued. VOTE: UNANIMOUS Chair Price thanked staff for all of their work in answering questions and putting the budget together. Adjournment A motion was made by Commissioner McKee and seconded by Commissioner Hamilton to adjourn the meeting at 9:51 p.m. Roll call ensued. VOTE: UNANIMOUS Renee Price, Chair Laura Jensen Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.